Savings Groups Technology Toolkit

Hosted by IED-VITAL, in collaboration with the Ford Foundation, Chevron and Compass Group, Plaza Local promotes the sale of agricultural products directly from smallholder farmers to individual and institutional clients, such as hotels, restaurants, catering services and multinational companies. The platform showcases the products that each farmer has available, organized by region, and allows users to place orders directly on the website. IED-VITAL manages the order, aggregates production as required, and sorts and delivers orders from local warehouses, increasing profit margins of smallholder farmers by about 35 percent and encouraging local consumption. Savings Groups serve a fundamental role in the model, mobilizing local farmers and providing access to finance for investment.

Organizations seeking to replicate the model should note the logistical requirements: the host, IED-VITAL has played a central role in the management of the targeted value chains, analyzing market trends, brokering relationships with institutional clients, assessing and sorting produce for quality, and managing supply networks and deliveries. The model is sustainable, with a 10-18% sales margin charged by the management agency.